The Sales of Goods Act, 1930

The Sales of Goods Act, 1930 (Act no. 3 of 1930) dated 15th March, 1930 was enacted with the view to provide for definition and amendment of laws on the matter of sales of goods. So far the applicability of the provisions of the Act of 1872 i.e. The Indian Contract Act, 1872, is concerned, the provisions which are inconsistent with the provisions of this Act, are applicable to contracts of sale of goods. Similarly, the provision of this Act of 1930 are extended to the entire India, however, the State of Jammu and Kashmir is exempted from their applicability.

The Act under its second Chapter, dealing with formation of Contract of sale of goods. It is defined that the contract of sale of goods is one where the seller of the goods transfers the property in the goods to the buyer for certain price as consideration. Similarly, the contract of sale can be either absolute or conditional. When the property is the goods transferred by seller to buyer under a contract, it is called sale. However, when such property is transferred on future date under the term or condition of the contract then it is called agreement to sell as per section 4 of the Act. Such contract of sale is to be made by offer and acceptance for selling or purchasing a goods for consideration i.e. price. There may be immediate delivery and payment or delivery and payment in certain instalments. Such contracts may be either in writing or oral or even there can be implied contract. The subject matter, i.e. goods in the contract of sale can be either already existing goods or even future goods i.e. the goods not in the existence at the time of making of contract. If any goods which is perishable in nature and in respect of which the contract of sale is made, such contract will be void even though the seller was not having knowledge to that effect. Similarly, if any agreement to sell is entered into regarding selling of goods perishable in nature, and thereafter if the goods became damaged or perished without anyone’s fault, then such agreement should be avoided as per section 8 of the Act. The buyer is responsible to pay the price so fixed in the terms of the contract of sale and if such price is not so fixed, then a reasonable price is to be paid by the buyer, depending upon the circumstances of the case. The conditions and warranty provided under the contract of sale is defined under section 12, where it is provided that, the condition and warranty are attached to the main purpose of the contract, however, in case of breach of condition, a contract can be repudiated but in case of breach of warranty, the contract cannot be repudiated, though person aggrieved can claim damages but cannot reject the goods.

The next Chapter is chapter 3 of the Act, where the effect  of the Contract is given. Section 18 of the Act says that if there is contract in respect unascertained goods, then the property in the goods should not be transferred to the buyer without there is sanction from buyer. So far as the passing of property in the goods is concerned, section 19 says that, it is to transfer to the buyer as per the intention of the parties, if the goods are specific or ascertained goods. If such goods are in deliverable state, then property in the goods transfers at the time of making of contract. And if the goods are not in deliverable state and the seller has to do something to get the goods into deliverable state, then such property is to pass after doing that thing to bring that goods in deliverable state. Other provisions under this Chapter deals with similar effects of the contracts of sale, delivery of goods, etc. Moreover, the section 27 is important so far as it is concerned with the sale of goods by the person other than owner thereof. In such situations the buyer of the goods not acquiring the better title until authorises such transaction. Similarly, the sale of jointly owned goods by the anyone of such joint owners in sole possession of them, is validitate under section 28, on the condition that the other co-owners should have given permission and the buyer should have purchased the goods in good faith without having noticed to the fact of no authority of the seller. Further, if there is sale of goods by the seller who got that goods under voidable contract, the contract is not void if the buyer purchases such goods without having knowledge thereof.

Further, Chapter 4 of the Act  makes provisions as to performance of contract of sale of goods. The seller and buyer are put in under the obligations to deliver and accept the goods and pay for them, respectively. The Act has made the payment and delivery as the most important conditions in the contract of sale, however, the contract under terms may provide for any contrary effect. The provisions regarding delivery or different types thereof, are given under subsequent provision of the chapter.

Chapter 5 deals with certain rights of the seller who was not paid against the goods sold by him. An unpaid seller can have right to lien on the goods if the goods are in his possession and right to stopping the goods in transit in case of the insolvency of the buyer and right to resale under the provision of this Act. Chapter 6 is important so far as it is connected with provision on breach of contract. Section 55 speaks for suit for price recovery. Even suits for non-accepting the delivery or non-making of delivery can be brought. The provision of specific relief Act, 1877 for the specific performance are applicable. Section 59 deals with breach of warranty and other provision are connected with similar object. The last chapter i.e. Chapter 7 of the Act makes miscellaneous provisions. Provision regarding auction sale are contained under section 64 of the Act. Section 64A provides for addition of increased or decreased to tax, in the contract of sale.

 by Faim Khalilkhan Pathan.